JC43
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True or False in Mulege
Hi Nomads,
As a newbie I had some questions about properties in Mulege and was told to open a new thread about that.
Makes good sense and I was having the same idea anyway.
These are the questions about Baja Sur in general and Mulege
Baja Sur is not Fronteriza Zone anymore but a part of the Mexican mainland now. The Fronteriza Zone ends at Maniadero. That's why the tax is adjusted
to the mainland. > true or false?
You need no Fideocomiso anymore in Mulege if you buy a property and own the land > true or false?
Thanks for any help
JC
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SFandH
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This is accurate information:
"The restricted zone, according to Article 27 of the Mexican Constitution, is all land located within 100 kilometers of any national border and within
50 kilometers of any ocean. Article 27 of the Constitution states that no foreigner will be allowed to acquire direct title to land within the
restricted zone. However, Mexico’s Foreign Investment Law allows foreigners to acquire indirect title to land in the restricted zone by one of two
methods; through a Mexican corporation or through a bank trust (fideicomiso)."
http://www.mexicolaw.com.mx/articles/buying-property-mexicos...
There is (was) a recent effort to get the constitution (Article 27) changed but it hasn't happened.
[Edited on 6-23-2014 by SFandH]
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durrelllrobert
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..however the restricted zone has nothing to do with the VAT increase to 16%. That applies to all of Baja plus everywhere else in Mexico.
Bob Durrell
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Bajahowodd
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Baja Sur is not a part of the mainland. Perhaps your confusion stems from the fact That the port of La Paz is the primary ingress for huge amounts of
goods from the mainland.
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BajaBlanca
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false and false. At least I have not heard anything to that effect.
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Gulliver
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I would not be surprised to see Article 27 modified some time in the next five to ten years. That said, any problems with just renting the land under
a home are in the personal relationship with the land owner. In Mulege we have examples of the best and the worst. Spend some time sitting down with
people who live there and talk to more than one person. Many more. I'm happier with my current land lord than I am with my local government stateside
but I hear the most astounding tales of woe about a few others.
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Alm
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1) False.
2) False.
Once in a while somebody new asks these questions, but there hasn't been any changes in either 1 or 2.
Certain properties on Mulege camps (and similar arrangements in other places) are indeed purchased and sold without Fideicomisco because they are not
really "real estate" - you only buy a structure on the leased land, with uncertain lease conditions. Those are cheaper but often still overpriced,
considering what you are legally getting and what it's going to cost you in annual lease.
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Gulliver
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Hmm. A couple of hundred a month for the lot and a ten year lease doesn't seem like that much to me.
The biggest real problem financially is that you want to be sure you are going to keep the place for a while since there is a 25% tax on the sale
price.
The power, water and phone/internet are not that bad.
There are plusses and minuses. Each person has a different situation.
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SFandH
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| Quote: | Originally posted by Gulliver
The biggest real problem financially is that you want to be sure you are going to keep the place for a while since there is a 25% tax on the sale
price.
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Do you mean a 25% capital gains tax? Is that true?
[Edited on 6-24-2014 by SFandH]
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Gulliver
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I asked if it was a capital gains tax and was told that it was a real estate tax. Paid by the seller.
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Alm
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| Quote: | Originally posted by Gulliver
Hmm. A couple of hundred a month for the lot and a ten year lease doesn't seem like that much to me.
The biggest real problem financially is that you want to be sure you are going to keep the place for a while since there is a 25% tax on the sale
price.
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A couple of hundred a month doesn't seem like much for a few years. 30K in 10 years (assuming the landlord won't jack it up like they do sometimes,
lease or no lease). Plus whatever was paid for the structure. Total is getting close to the cost of a "normal" home. Yes, to each its own. Buying
land isn't a sure bet either, nothing is, in Mexico.
I don't remember about 25% capital gains - I think they are charging this tax now no matter how long you were keeping that home for. I might be wrong.
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Gulliver
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Not a capital gains tax. That would be on the increase in value. This a real estate transaction tax. 25% every time it changes hands. And it doesn't
work to try and deal under the table. Appraisals are a part of the determinations.
It depends on the landlord. This is not a land of English Common Law. It is Napoleonic Code here. Personal relationships are everything. If a person
is not comfortable with this, it's not a place to do business.
If a prospective landlord has done anything like changing the rules in mid stream in the past, walk away. I would hope you are not coming here for
hassles.
Also, if a person is thinking about lawyers and the law, it's not a comfortable place either. I've made my peace with it.
Let's see. 30K over ten years. People pay that much in auto depreciation and think nothing of it.
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J.P.
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| Quote: | Originally posted by Alm
| Quote: | Originally posted by Gulliver
Hmm. A couple of hundred a month for the lot and a ten year lease doesn't seem like that much to me.
The biggest real problem financially is that you want to be sure you are going to keep the place for a while since there is a 25% tax on the sale
price.
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A couple of hundred a month doesn't seem like much for a few years. 30K in 10 years (assuming the landlord won't jack it up like they do sometimes,
lease or no lease). Plus whatever was paid for the structure. Total is getting close to the cost of a "normal" home. Yes, to each its own. Buying
land isn't a sure bet either, nothing is, in Mexico.
I don't remember about 25% capital gains - I think they are charging this tax now no matter how long you were keeping that home for. I might be wrong.
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RULE OF THUMB the more you spend in Mexico to get legal as you think you should the more its going to cost you
for example.
use a federal notary you may pay 25% and more in taxes as they are tax collectors too.
you will most likely pay the land owner that in reality owns your house a 10% comission and the socalled relator 10% or more this leaves you roughly
55% if you are lucky.
These are just rough estimates it could be more.
so you see why most home sales on leased land are carried out behind closed doors'
[Edited on 6-24-2014 by J.P.]
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Alm
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| Quote: | | Not a capital gains tax. That would be on the increase in value. This a real estate transaction tax. 25% every time it changes hands.
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Done some digging. It looks like there is a capital gains tax as well, 35% as of this year. An exemption is granted for permanent residents after
using it 5 years as a Primary Residence.
| Quote: |
if a person is thinking about lawyers and the law, it's not a comfortable place either. I've made my peace with it.
Let's see. 30K over ten years. People pay that much in auto depreciation and think nothing of it. |
30K car thrown away every 10 years? Wow. I must be in a different "Baja" 
No, of course getting as much legal as possible is not the Mexican way. Just wanted to give a warning to people that sign a lease and "think" it will
protect them.
[Edited on 6-25-2014 by Alm]
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mtnpop
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Our attorney put it like this to us...
When you sell. An appraiser is sent to determine a value of the property... That value us what you pay tax on.... not the difference in what you paid
and what you sell it for like in the good ole U.S.of A. Mexico works it different even tho its sometimes called a capital gain tax...
So, if you have the appraiser in your back pocket like some I have known, you just might get that figure more to your liking...
This is done when the Notario is doing the paperwork... usually in 4 figure amount...
For those that don't know,, a Fideicomiso is an annual fee not a monthly..
And,,, they also charge the 16% IVA on top of the payment...Not sure yet who gets the lions share of these trust fees.... One fideicomiso bank is
not really a bank,,, just an office in LaPaz...
If you can purchase the property, not lease, you still do have to get a Fidei..
And so you also know,,, watch out,,, many sellers have slid the tax into the poor buyer,,, this from experience... dang it...
Common sense is a flower that doesn\'t grow in everyone\'s garden.....
A wise man once spoke nothing.....
Never kick a cow chip on a hot day!!
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